As we reach the halfway point of 2026, now is an excellent time to review your tax withholding and estimated tax payments. Taking a few minutes to evaluate your current tax situation can help you avoid surprises at tax time and keep you on track for the rest of the year.
For Individuals:
Many life changes can affect how much tax should be withheld from your paycheck or paid through estimated tax payments. Consider reviewing your withholding if you have experienced any of the following this year:
– Started a new job or changed employers
– Received a promotion, bonus, or significant pay increase
– Began earning self-employment or gig income
– Married, divorced, or welcomed a new child
– Experienced changes in deductions or tax credits
If too little tax is being withheld, you could owe taxes and potentially penalties when you file your return. A mid-year review allows you to make adjustments now while there is still plenty of time for those changes to take effect.
For Business Owners:
Business owners should also take this opportunity to review their tax position. If your business has experienced changes in revenue, expenses, payroll, or profitability during the first half of the year, your estimated tax payments may need to be adjusted. Now is a good time to:
– Review year-to-date financial statements.
– Evaluate cash flow and projected taxable income.
– Review owner distributions and estimated tax obligations.
– Discuss any significant business changes that could affect your 2026 tax liability.
Tax planning is most effective when it happens throughout the year—not just during tax season. A proactive mid-year review gives you the opportunity to identify planning strategies, make necessary withholding or estimated tax adjustments, and help position you for a smoother year-end.